Stock Monitor: Flowserve Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 15, 2018 / If you want access to our free earnings report on Graco Inc. (NYSE: GGG), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GGG. On April 25, 2018, Graco reported financial results for the first quarter of 2018 ending March 30, 2018. Graco's record performance from 2017 continued in Q1 FY18, achieving the highest sales and operating earnings for a quarter in Graco's history. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Earnings Highlights and Summary

Graco's total revenues reached $406.35 million for Q1 FY18, reflecting an increase of 19.31% from $340.59 million in Q1 FY17, due to double-digit percentage growth in all segments and regions. The reported revenue number exceeded analysts' consensus estimates by $37.03 million.

In the quarter under review, favorable currency translation contributed 5 percentage points while acquired operations added 3 percentage points of sales growth. In Q1 FY18, Graco's America's sales increased 11%; Europe, Middle-East, and Africa (EMEA) sales jumped 28% (15% at consistent translation rates); and Asia/Pacific sales advanced 36% (28% at consistent translation rates).

During Q1 FY18, Graco's total cost of products sold was $183.93 million, 18.86% higher than $154.75 million in Q1 FY17. The Company's gross profit advanced 19.68% to $222.42 million in Q1 FY18 from $185.85 million in Q1 FY17.

Graco incurred selling, marketing, and distribution expenses of $62.52 million in Q1 FY18, 14.95% higher than $54.39 million in Q1 FY17. In the quarter under review, the Company's product development expenses advanced 7.22% to $15.29 million and its general and administrative (G&A) expenses jumped 10.59% to $32.91 million on a y-o-y basis. Graco reported operating earnings of $111.70 million in the quarter under review, up 27.75% from $87.44 in the year-ago same quarter.

Graco's net earnings for the quarter ending March 30, 2018 were $85.51 million, 40.80% higher than $60.73 million in the same period last year. The Company's diluted earnings per share (DEPS) also rose 40% to $0.49 in the reported quarter from $0.35 in the year-ago same quarter. The reported earnings included excess tax benefit from option exercises. Graco's adjusted DEPS, excluding these non-recurring items, was $0.48 in Q1 FY18, up 45.45% from $0.33 in Q1 FY17. This exceeded analysts' consensus estimates by $0.07 per share.

Graco's Segment Details

During Q1 FY18, the Industrial segment's net sales were $195.20 million, up 24.81% on a y-o-y basis. This segment had operating earnings of $69.13 million in Q1 FY18 compared to $53.74 million in Q1 FY17, reflecting an increase of 28.64%.

The Process segment reported revenues of $80.04 million in Q1 FY18, an increment of 14.29% from $70.03 million in Q1 FY17. This segment had operating earnings of $17.70 million in the quarter under review, up 31.49% from $13.46 million in the previous year's same quarter.

For Q1 FY18, the Contractor segment generated revenues of $131.12 million,14.84% higher than $114.17 million in Q1 FY17.This segment had operating earnings of $31.41 million in Q1 FY18, an increase of 20.72% from $26.02 million in Q1 FY17.

Cash Matters

Graco had cash and cash equivalents of $113.83 million as on March 30, 2018, 9.81% higher than the $103.66 million reported as on December 29, 2017. The Company's long-term debt also increased 26.17% to $285.20 million at the end of Q1 FY18 from $226.04 million at the end of Q4 FY17.

Graco's net cash flow from operating activities was $58.75 million for the quarter ending March 30, 2018, 16.98% higher than the $50.22 million in the same period last year. The Company spent $8.96 million on purchases of property, plant, and equipment additions in the reported quarter, up 9.28% from $8.20 million in the year-ago corresponding quarter.

Graco distributed dividends of $22.45 million in Q1 FY18, an increase of 11.57% from $20.12 million in Q1 FY17. The Company spent $84.72 million on repurchases of common stock in the quarter under review compared to $90.16 million in the prior year's corresponding quarter.

Outlook

Graco raised its full-year 2018 outlook to mid-to-high single-digit organic sales growth on a constant currency basis worldwide, from a prior outlook of mid-single-digit growth.

Stock Performance Snapshot

May 14, 2018 - At Monday's closing bell, Graco's stock slightly fell 0.31%, ending the trading session at $45.66.

Volume traded for the day: 385.89 thousand shares.

Stock performance in the last three-month ? up 8.77%; previous six-month period ? up 5.28%; past twelve-month period ? up 24.71%; and year-to-date ? up 0.97%

After yesterday's close, Graco's market cap was at $7.59 billion.

Price to Earnings (P/E) ratio was at 25.54.

The stock has a dividend yield of 1.16%.

The stock is part of the Industrial Goods sector, categorized under the Diversified Machinery industry.

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